Nubank Valuation Nu Holdings NYSE:NU Stock Analysis

Nubank's valuation is a fascinating topic, especially considering its recent listing on the NYSE under the ticker symbol NU. Nubank's valuation reached $52 billion, making it one of the most valuable fintech companies globally.

The company's impressive valuation is a result of its rapid growth and success in the Brazilian market. Nubank has over 48 million customers, with a significant portion of them being millennials.

Nubank's business model is centered around digital banking services, offering no-fee credit cards, personal loans, and investment services. This approach has allowed the company to disrupt the traditional banking industry in Brazil.

The company's valuation is also influenced by its expansion plans into other Latin American countries, as well as its potential for future growth in the US market.

Nubank's financial performance has been impressive, with the company reporting a net income of $1.1 billion in 2020. This is a significant increase from the $134 million reported in 2019.

Nubank's revenue has grown rapidly, reaching $1.4 billion in 2020. This growth is largely driven by the company's expanding customer base and increasing average revenue per user.

The company's net worth has also increased significantly, reaching $30 billion in 2020. This valuation makes Nubank one of the most valuable fintech companies in the world.

Nu Holdings has had a share price of $10.97, which is a significant drop from its 52-week high of $16.15. The current price is still higher than the 52-week low of $8.26.

The company's beta is 1.05, indicating a slightly higher level of volatility compared to the market. Over the past year, the share price has increased by 28%, outpacing the 1-year change of other stocks.

Here's a breakdown of Nu Holdings' price performance over the past year:

The company's share price has been relatively stable over the past 3 months, with a 1-month change of -8.58% and a 3-month change of -17.08%.

When evaluating a company's financial performance, one key metric is the Profitability Score. Nu Holdings Ltd's profitability score is 55/100, indicating that the company is not extremely profitable.

The higher the profitability score, the more profitable the company is. This score is a crucial factor in due diligence, as it helps investors and analysts assess a company's financial health.

A lower profitability score may indicate that a company is struggling to turn a profit, which can be a red flag for potential investors.

Nu Holdings Ltd, the parent company of Nubank, has some impressive financials. The company's current assets total $6.2 billion, with $5.1 billion of that being cash and short-term investments.

The breakdown of current assets shows that Nu Holdings Ltd has a significant amount of cash on hand, which can be used to fund operations or make strategic investments.

Here's a rough estimate of the company's current assets:

The company's current liabilities total $38.7 billion, with $28.8 billion of that being short-term debt. This suggests that Nu Holdings Ltd may be carrying a significant amount of debt, which could impact its financial flexibility.

Nubank has raised a total funding of $2.27 billion over 12 rounds. Its first funding round was on July 17, 2013.

Nubank's latest funding round was a Series G round on June 08, 2021, for $750 million. This round was led by Berkshire Hathaway and Sands Capital, with 9 investors participating.

Nubank has had multiple funding rounds, including Series G rounds in January 2021 and June 2021, and a Series F round in August 2020.

Here's a breakdown of Nubank's funding rounds:

Nubank's funding rounds have been led by various investors, including Berkshire Hathaway, Sands Capital, and Tencent.

Shareholder Returns are a crucial aspect of any company's financial performance. NU, the company we're analyzing, has shown some impressive numbers.

NU's 7-day return is 6.2%, significantly higher than the US Banks industry's 0.6% and the US Market's -0.2%. This indicates that NU is performing well in the short term.

Here's a comparison of NU's returns with the industry and market:

Over the past year, NU's return of 28.0% is lower than the US Banks industry's 29.1%, but higher than the US Market's 25.6%. This suggests that while NU is performing well, it's not outpacing the industry.

The balance sheet decomposition of Nu Holdings Ltd is a fascinating topic. Nu Holdings Ltd has a significant amount of current assets, totaling $6.2 billion.

Cash and short-term investments make up a substantial portion of these current assets, totaling $5.1 billion. This suggests that Nu Holdings Ltd has a strong liquidity position.

Receivables and other current assets also contribute to the company's current assets, with receivables totaling $971.3 million and other current assets totaling $109.3 million.

On the other hand, current liabilities are a significant concern for Nu Holdings Ltd, totaling $38.7 billion. Accounts payable and short-term debt are the largest contributors to these current liabilities, with accounts payable totaling $8.6 billion and short-term debt totaling $28.8 billion.

Here is a breakdown of Nu Holdings Ltd's current assets and current liabilities:

Overall, Nu Holdings Ltd's balance sheet decomposition suggests that the company has a significant amount of current assets, but also a substantial amount of current liabilities.

The Earnings Waterfall of Nu Holdings Ltd is a fascinating topic, and it's great to dive into the numbers. Revenue for Nu Holdings Ltd was a staggering $10.9 billion USD.

This revenue is what drives the company's success, and it's interesting to see how it breaks down. The cost of revenue was a significant $2.9 billion USD, which is a substantial chunk of the total revenue.

Gross profit, on the other hand, was a healthy $8 billion USD, indicating that the company is doing a good job of managing its costs. Operating expenses, however, were a whopping $5.4 billion USD, which might seem like a lot, but it's essential to consider the context.

Operating income, after deducting operating expenses, was a respectable $2.6 billion USD. Other expenses, such as interest and taxes, added up to $807.3 million USD, which is a relatively small portion of the total revenue.

Net income, after considering all the expenses, was a substantial $1.8 billion USD, which is a great indicator of the company's overall financial health.

Nu Holdings Ltd's solvency score is 40/100, which indicates that the company's ability to meet its long-term debt obligations is a concern.

The company's non-current liabilities total 2.2B, which is a significant portion of its overall liabilities. This could be a red flag for investors.

Long-term debt accounts for 1.3B of Nu Holdings Ltd's non-current liabilities, which is a substantial amount. This could impact the company's ability to meet its financial obligations in the long run.

To better understand Nu Holdings Ltd's solvency situation, let's take a look at the company's current liabilities, which total 38.7B. This is a substantial amount, and it's essential to consider how the company plans to manage its short-term debt.

Here's a breakdown of Nu Holdings Ltd's non-current liabilities:

Overall, Nu Holdings Ltd's solvency score suggests that the company may struggle to meet its long-term financial obligations.

The current share price of Nu Holdings is a staggering $10.97, which is a 28% increase from last year. This significant growth is a testament to the company's strong financial performance.

The 52-week high for Nu Holdings was a notable $16.15, while the 52-week low was a concerning $8.26. This fluctuation in price is not uncommon in the market.

Beta, a measure of volatility, is 1.05, indicating that the stock price can be quite unpredictable. I've seen this before in other companies, and it's essential to keep an eye on it.

The 1-month change in the stock price was a concerning -8.58%, while the 3-month change was a more significant -17.08%. This decline in value is something investors should take note of.

Here's a summary of the price targets for Nu Holdings, based on Wall Street analysts' forecasts:

The change since the IPO was a modest 6.20%, which is a relatively small increase compared to other companies.